Credit Card Utilization

[Anonymous]

Agreed with the previous advice.  Six months ago, my utilization was 47% (not as bad as 70, I know, but that's still pretty high) - using the pay-down method on the highest APR cards, I've managed to whittle it down to a somewhat-manageable 25% (although it's getting lower every month, as I'm making a HUGE push toward paying them down/off).  It can be done, for sure.

[NRB525]

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@twiddledee wrote:

Total credit card $42K

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It would be helpful to get a list of which cards, what their CL is, APR on each, and most importantly, where the $42k debt lives on each of those cards

That large of a nut is going to take some strategy to gnaw down. The first step is to know where you are in the landscape of possibilities.

[Anonymous]

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@TiggerDat wrote:

If your only concern is your score, the the cards with highest balances.

If you are concerned with how much overall you will be paying, then the highest interest rate cards.

But my question to you would be why do you need your score higher?  Is it so you can get more cards?  Will you then charge them up?

Set the goal of having no more than 10% overall being reported.  Set up other goals, like PIF each month.  Rethink each and every card.  When you want to buy something, find it at the cheapest price you can.  This might require a bit of time, but this will help since you will be occupying time which you might otherwise be doing something like shopping for more things.  Remember short term results can yield long term benefits, just make sure those benefits are well designed to insure that you get to your end goal!

I have $100,000 of credit limits.  Only 10% of it gets used.  I personally pay no interest on credit cards!  (My niece and sisters who also use my cards do.  I do advise them all the time that this shouldn't be happening, since it wastes their valuable money.)  I use the cards with the best rewards for each purchase, so that I get more out of every purchase.  I look for the cheapest price I can find on any purchase of a sizable amount.  For me sizable is usually anything over $50.  It doesn't mean I don't have things, I have plenty of things!  In fact, since adopting this strategy, I have more things and a sizable savings.  I buy quality things now more than ever.  They last longer and thereby insure that I spend less over time.  I don't look at it as that I can't afford it now, I look at is as I can't afford not to!  I never quibble over a split check and the differences between what some people think they owe and what they do.  (Others have noticed this and it has earned me quite a few free meals.  More than what I have spent by taking up the slack!  I also use a credit card for these transactions so I get the full amount of the cash back on the purchase!)  I PIF each month. 

Define your end goal.  Work towards it. 

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I 100% agree!!